Africa is home to 6 of the top 10 fastest growing countries in the world and U.S. exports to sub-Saharan Africa now top $21 billion a year. We want to help you tap into those markets.
When you look at Africa, which of its faces do you see?
Do you see a continent overwhelmed with so many problems that have to be escaped from? Or do you see these problems as opportunities in disguise that could unlock significant rewards in terms of market value, wealth, and jobs?
In the end, it’s still the same continent. But the perspective you take on Africa can make a world of difference. Africa is a market that overwhelmingly rewards problem-solvers. Only those smart, ambitious and creative people who can find innovative solutions to Africa’s tough problems will have the chance to make a big impact in the world, and make a lot of money in the process.
Key figures:
The attractiveness of business in Africa:
Population and demographics
- 40% of the global population growth will be in Africa by 2050
- More than 50% of Africa’s population is under 20 years old, making it the world’s youngest continent – in comparison only 28 % of the population of China is under 20 years old
- 500 million Africans are between the age of 18 and 24. By 2040, the forecast is 1.1 billion — more than in China or India.
Markets and consumers
- Consumer expenditure is set to rise from USD 600 billion in 2010 to nearly USD 1 trillion in 2020
- Urban African consumers spend the largest share of their budgets (45%) on food and groceries –more than the average consumer in the BRIC countries
- More than half of all African households are projected to have discretionary income by 2020 – corresponding to almost 130.000 households
- Consumer-facing industries (retail/wholesale, banking, telecommunication and tourism) in Africa are expected to grow by USD 400 billion by 2020, with apparel, consumer goods and food accounting for $185 billion
Economic performance
- GDP growth for the continent is forecast at 5.4% in 2013 and 5.7% in 2014
- 6 of 10 of the world’s fastest growing economies are currently in Africa
- FDI inflows to Africa have increased by 13.6% and FDI outflows by 55.6% since 2010
- Average annual return on capital of African companies was 65-70% or higher than that of comparable companies in China, India, Indonesia, and Vietnam
Regardless of the area or sector, investors with a long-term view and the right local partners who can assist them enter a market and bring an understanding of the continent, its cultures and people will have high rewards. Africa’s fundamentals appear strong, and the continent’s outlook remains positive. The belief remains unshakable among Africans that tomorrow will be better than today and that is the kind of infectious confidence in which investments thrive.
With the backing of the international community more African governments are embracing the right reforms, building the right institutions, growing resilient economies and making the right policy choices, including diversifying their economies away from oil, gas and mining to the massive job-creating promise held by agriculture and small and medium-size enterprise creation.
The stark fact is that “if you are not doing business in Africa, then you are NOT doing business”.